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Mass frustration as UK shareholders let down by poor investor relations (Investment Europe)

| Wednesday February 15, 2017

Asset Match’s new research revealed that there is mass frustration among UK shareholders due to a lack of communication and transparency from the businesses they have invested in. Based on a survey of 2,000 UK adults, the study found that 9% of Britain’s shareholders feel locked-in due to an inability to sell or trade the shares they own in a private company – equating to over 600,000 trapped and frustrated investors.

A recent survey found that 44% of UK investors believe Brexit will have a positive impact on their investment strategies. The same study showed that 23% of investors intend to invest in stocks and shares in 2017, making it far more popular as an asset class than property (11%), bonds (7%) and commodities (7%). However, an inability to release the value of the shares they currently own risks undermining this confidence, with the country’s shareholders trapped within their current equity investments, unable to re-invest into other private businesses despite wanting to.

Asset Match uncovered that the discontent among shareholders stems from investor relations that had been left dormant, or lack of company activity to enable the activation of trading options. Over one in ten (11%) shareholders across the UK are aggrieved that they have held shares for longer than they intended to when they made the investment – this figure rises to 20% among shareholders aged 18-34. Furthermore, 10% of shareholders said they have never actually been given the opportunity to discuss options regarding their shares since making their original investment. Indicative of the poor transparency and communication from the leaders of private companies, 27% of UK shareholders do not know the current value of the shares they own.

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